Operations
NVIDIA Corporation is a leader in the semiconductor industry and designs graphics chips for the gaming and professional markets. NVIDIA partners with organizations around the world to manufacture chips to be used in the partnering company’s product (Hadfield & Hassett, 2017).
Background
In 1993, NVIDIA was founded by Jensen Huang, Chris Malachowsky, and Curtis Priem with the goal of producing cutting edge products for PC gaming (NVIDIA History, 2019). Incorporated in 1998, NVIDIA invented the graphics processing unit (GPU) in 1999 (Hadfield & Hassett, 2017). They have expanded their offerings into PC, mobile, automotive, and A.I. based platforms (NVIDIA History, 2019).
Markets
Within the semiconductor industry, NVIDIA continually pushes boundaries in the gaming, professional visualization, data center, and automotive technology markets (Hadfield & Hassett, 2017).
The company’s platform for gaming provides developers an ability to create realistic environments for gamers. The professional visualization market caters to those you want to edit, create, or design almost anything digitally – architect, vehicle, or product concepts. NVIDIA has recently integrated their accelerated computing platform to address the AI field with unstructured data and can be seen in data centers throughout the world. Lastly, the automotive industry is ripe for advancements in auto-pilot technology – and NVIDIA is working with top tier automotive companies to assist in developing mapping and training networks (NVIDIA Corp, n.d.).
Virtual Reality
Clearly, NVIDIA has progressed from creating simple GPU chips to be a powerhouse in the semiconductor industry. NVIDIA is capable to enter new markets based on multiple factors: the ability to generate consistent profits, manufacturing resources, and distribution outlets.
With the R&D budget and manufacturing of chips, NVIDIA can utilize their GPU technology to create advanced Virtual Reality capabilities. The virtual reality market is poised to reach $13 billion by 2020 (Wood, 2017). First, NVIDIA would need to acquire a hardware company to become vertically integrated in the market. Their GPU technology can be utilized inside the hardware headsets designed and manufactured by the acquired company. Finally, the VR products can be offered with existing partnerships, since NVIDIA’s principal marketing strategy is to work with companies to go to market (Hadfield & Hassett, 2017)
This would just be the start of a new revolution. While virtual reality is a market itself, the products can be used across other markets: health and medicine, entertainment, travel and leisure, education, and many more.
Resources
Hadfield, P., & Hassett, A. (2017, November 10). Krause Fund Research [Scholarly project]. In Krause Fund Research - NVIDIA Corporation. Retrieved January 23, 2019, from https://tippie.uiowa.edu/sites/tippie.uiowa.edu/files/documents/krause/f17_nvda.pdf
NVIDIA Corp (NVDA.O) Company Profile. (n.d.). Retrieved January 23, 2019, from https://www.reuters.com/finance/stocks/company-profile/NVDA.O
NVIDIA History – A Timeline of Innovation. (2019). Retrieved January 23, 2019, from https://www.nvidia.com/en-us/about-nvidia/corporate-timeline/
Wood, L. (2017, November 10). Global Virtual Reality Market - Expected to Reach $13 Billion by 2020 - Research and Markets. Retrieved January 23, 2019, from https://www.businesswire.com/news/home/20171110005291/en/Global-Virtual-Reality-Market---Expected-Reach
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